Individual Health Insurance – What Types of Plans Are Available Under the Affordable Care Act?
The Affordable Care Act has made changes to individual health insurance plans. This article will describe the new types of individual health insurance plans available and what they entail. Read on to learn more about HMOs, Indemnity plans, and Preferred provider organization (PPO) plans. This article will also discuss the benefits and limitations of each type of individual health insurance plan. By the time you’re finished reading, you’ll be an expert on individual health insurance.
Affordable Care Act changes availability, cost and benefits of individual health insurance plans
The Affordable Care Act (ACA) changed the availability, cost and benefits of individual health insurance policies. It added new protections for people with preexisting conditions and limited insurers’ ability to discriminate based on health status or gender. Among other changes, it created a new guarantee-issue provision for insurance plans and limited insurers’ ability to set premiums based on age and gender. And the law also made it illegal for insurers to reject individuals based on their health status.
There are several benefits to HMOs for individual health insurance. In most cases, they include predictable cost sharing and administrative ease. There are also restrictions on the choice of providers. Participants are entitled to care from healthcare providers within the HMO’s network. In return for a monthly premium, they pay a copay at the time of service, typically $10 to $30.
The rest of the health care cost is covered, and most HMOs use capitation arrangements to reimburse physicians.
An individual health insurance indemnity plan is a product that pays for medical expenses incurred by the policyholder. These plans are generally less expensive than traditional health insurance plans. For example, a high-end fixed indemnity plan may provide a $5,000 benefit per day for hospitalization and a $10,000 benefit for surgery. These … Read More